Merck's Vaccines Business Hits All-Time High

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Oct. 28 (Bloomberg) -- Olivia Sterns reports on Merck's vaccines business. She speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Their overall business?

Vaccines is one of their strengths.

You can see that in the result for the vaccine business is an all-time high.

It's really being driven by sales of gardisil which is making almost $2 billion per year.

That is one reason merck says it wants to focus on vaccines.

It's a vaccine for hpv.

The other reason which i didn't realize after speaking to the head of merck is that the economics of vaccines is also attractive.

One of the things we have to realize is that vaccines don't have patents.

When you have a vaccine, you have an annuity.

The value of that intellectual property and know-how can last in perpetuity as long as the infection you are trying to repent is still human health issue.

Vaccines actually act like an annuity.

It's a revenue stream that is fairly stable.

Ultimately, demand is pretty stable because almost everybody is a candidate for a vaccine.

You saw how these things work.

They are working on a broader spectrum vaccine.

It's incredible to go into the laboratory.

There i am in a bio vac suit.

I had to have gloves on because i had no policy on grade i had to take off my makeup to get it mayor.

Half of the process of making vaccines is getting everything as sterile and safe as possible.

They need to get it as pure as possible because -- i'm surprised they let cameras in there.

That is the first time they did.

They say that you need these things to be safe enough to inject into a newborn baby.

They are working on a broader spectrum of vaccine.

They will go to the fta with that later this year.

This text has been automatically generated. It may not be 100% accurate.

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